Spanish Government to Provide Real Benefit Data to Unions for Wage Negotiations
Agreement aims to support increased salaries and enhance transparency in collective bargaining.
On Friday, an agreement was established between the Ministry of Finance and the Ministry of Labor in Spain, stipulating that recipients of the Minimum Interprofessional Wage (SMI) will not be required to pay income tax (IRPF).
This agreement also addresses a long-standing demand from trade unions.
The Minister of Labor, Yolanda Díaz, announced that the Tax Agency (AEAT) will provide disaggregated data on real benefits to sectoral negotiation tables made up of workers and employers.
The intention behind this initiative, as emphasized by Díaz and supported by trade unions UGT and CCOO, is to facilitate salary increases.
During a statement on La Sexta, Díaz articulated that having access to this data during negotiations will be crucial for raising wages in a country where the median salary is €1,599 per month, described as very moderate.
Díaz illustrated her point with a hypothetical scenario involving negotiations in the metal sector, highlighting that such transparency will allow unions to accurately assess the sector's profits.
This information could empower unions during wage discussions, especially if employers claim limited capacity for wage increases due to low profits, thereby enabling unions to contest the veracity of such claims and advocate for higher salaries.
The Ministry of Labor has repeatedly indicated its goal to achieve widespread salary increases beyond the SMI.
The significant rise in the SMI since 2018, amounting to a cumulative increase of 61%, has resulted in an increasing number of individuals earning this minimum wage, making it the most prevalent salary level, as other wages have not risen at the same pace.
Furthermore, a reduction in working hours has been suggested as an indirect means to increase hourly wages while maintaining overall pay.
The recent agreement for the provision of real benefit data was a specific demand from UGT and CCOO since 2022. The inflation crisis and its impact on prices and salaries particularly during 2022 caused business profits to surge, while salaries experienced a decline in purchasing power.
Previously, the Ministry of Finance did not comply with requests to share these figures, offering instead the Business Margins Observatory, a statistical overview produced in collaboration with the Bank of Spain that lacks detailed breakdowns by sector and region, thereby limiting its utility for sectoral negotiations.
The current agreement marks a significant shift in policy, potentially enhancing the dynamics of wage negotiations across various sectors.
This agreement also addresses a long-standing demand from trade unions.
The Minister of Labor, Yolanda Díaz, announced that the Tax Agency (AEAT) will provide disaggregated data on real benefits to sectoral negotiation tables made up of workers and employers.
The intention behind this initiative, as emphasized by Díaz and supported by trade unions UGT and CCOO, is to facilitate salary increases.
During a statement on La Sexta, Díaz articulated that having access to this data during negotiations will be crucial for raising wages in a country where the median salary is €1,599 per month, described as very moderate.
Díaz illustrated her point with a hypothetical scenario involving negotiations in the metal sector, highlighting that such transparency will allow unions to accurately assess the sector's profits.
This information could empower unions during wage discussions, especially if employers claim limited capacity for wage increases due to low profits, thereby enabling unions to contest the veracity of such claims and advocate for higher salaries.
The Ministry of Labor has repeatedly indicated its goal to achieve widespread salary increases beyond the SMI.
The significant rise in the SMI since 2018, amounting to a cumulative increase of 61%, has resulted in an increasing number of individuals earning this minimum wage, making it the most prevalent salary level, as other wages have not risen at the same pace.
Furthermore, a reduction in working hours has been suggested as an indirect means to increase hourly wages while maintaining overall pay.
The recent agreement for the provision of real benefit data was a specific demand from UGT and CCOO since 2022. The inflation crisis and its impact on prices and salaries particularly during 2022 caused business profits to surge, while salaries experienced a decline in purchasing power.
Previously, the Ministry of Finance did not comply with requests to share these figures, offering instead the Business Margins Observatory, a statistical overview produced in collaboration with the Bank of Spain that lacks detailed breakdowns by sector and region, thereby limiting its utility for sectoral negotiations.
The current agreement marks a significant shift in policy, potentially enhancing the dynamics of wage negotiations across various sectors.
Translation:
Translated by AI
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